Reliance Communications to launch nationwide GSM Services

Reliance Communications Ltd has announced that the Company welcomes the DoT's new initiatives towards ensuring further acceleration of tele-density in India and in creating a level playing field.

The acceptance by the DoT of TRAI's recommendation of the enhanced subscriber linked criteria for spectrum allocation will ensure the much needed spectral efficiency and a greater competitive environment. This will facilitate meeting the telecom objectives of the country of attaining 500 Million customers by 2010.

The Unified Access Service Licenses are technology neutral and the grant of approval to Reliance Communications for offering nationwide GSM services reaffirms our stand. Reliance Communications would shortly commence its GSM operations on a Pan India basis in addition to existing CDMA services.

The Company has today made a payment of the requisite fee of Rs 1651 Crore for this initiative. As per DoT's media release, the Company will be considered for allocation of GSM spectrum from October 19, 2007 i.e. the date of payment of the prescribed fee.

Reliance Communications commenced its mobile operations in May 2003. Its entry led to affordable services for the Indian consumers and manifold growth in telecom penetration in the country. Today, it serves over 38 Million Indian and global subscribers with 18% wireless market share. It has embarked on a major network coverage plan for 2007-08 and will extend mobile coverage to over 23000 towns and 6 lakh villages, thereby providing mobile coverage to over 90% of India's population.